Question

Yousuff deposits $2,500 into a savings account that has a simple interest rate of 3.8%.

5A) How much interest will Yousuff make in one year? Show your work!


5B) How much interest will Yousuff make after 8 years? Show your work!


5C) After 8 years, how much money will Yousuff have in his account? Remember to include both the original principal money AND the interest she made.

Answer 1

Explanation:

Principal = $2,500

Rate = 3.8%

5A). The interest Yousuff make in one year

Therefore Time = 1 year.

Simple interest

`= (pincipal * time * rate)/(100 \\ ) \\ = (2500 * 1 * 3.8)/(100) \\ = 25 * 1 * 3.8 \\ = 95 .`

Therefore the interest Yousuff make in one year = $95.

5B). Interest Yousuff make in after 8 years

the time = 8 years

the interest

`= (pincipal * time * rate)/(100) \\ = (2500 * 8 * 3.8)/(100) \\ = 25 * 8 * 3.8 \\ = 200 * 3.8 \\ = 760`

Therefore the interest Yousuff make after 8 years = $760.

5C). Principal - interest that Yousuff made after 8 years.

$2500 - $ 760

= $ 1,740.